If there are key levels that are 10pts apart that is when I have scalping mindset and anything above 10pts I want to give it the room to hit the price target with a 5 pt buffer to take profits once we reach within 5 pts of a target - I also tighten my stop loss once at 10-20% profit with the goal of never allowing trades to go red when I have a nice profit) I then wait for key levels targeting one level to the next and taking profits at each one. I let the initial balance do its thing - I am just a small fish in a large ocean of traders so let's let them fight it out I do not trade within the first half hour UNLESS I am in a trade from the prior session and looking to close the trade or we have a major gap or a key level already broken If you look at the line graph as well above spot levels are negative where as below spot levels are positive - positive draws/magnets price to it. Looking at just the vanna levels below spot suggests the market wants to sell off more. Getting above 3925 or 3950 will take a news catalyst that will bring VIX downģ850 is a negative vanna - acting as repellentģ840 is a negative vanna - acting as repellentģ825 is a MAJOR positive vanna - acting as magnetģ820-3810 is a cluster of negative vanna’s - acting as repellentģ800 is a positive vanna - acting as magnetģ825 is a large tower that is going to attract price. For price to go below spot through a magnet or repellent VIX and IV must increase.ģ825 is a large positive vanna below spot - price will seek to magnet to itģ925 is a small positive vanna above spot - price will seek to magnet to itģ865 is negative vanna - acting as repellentģ875 is negative vanna - acting as repellentģ900 is negative vanna - acting as repellentģ915 is positive vanna - acting as magnetģ925 is positive vanna - acting as magnetģ950 is negative vanna - acting as repellent Remember for price to go above spot through a magnet or repellent VIX and IV must decrease or stay flat.
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